Question

In 2017, the Dugan Co. had net credit sales of $1,500,000. On January 1, 2017, Allowance...

In 2017, the Dugan Co. had net credit sales of $1,500,000. On January 1, 2017, Allowance for Doubtful Accounts had a credit balance of $32,000. During 2017, $60,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivable basis). If the accounts receivable balance at December 31 was $400,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017?Bottom of Form

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Allowance for Doubtful Accounts, January 1, 2017 = $32,000

Accounts receivables written off during 2017 = $60,000

Allowance for Doubtful Accounts, unadjusted = Allowance for Doubtful Accounts, January 1, 2017 - Accounts receivables written off during 2017

= 32,000 - 60,000

= $28,000 (Debit)

Accounts receivables, December 31 2017 = $400,000

Estimated uncollectibles = 10% of Accounts receivables

= 400,000 x 10%

= $40,000

Bad debt expense = Estimated uncollectibles + Allowance for Doubtful Accounts, unadjusted (Debit)

= 40,000 + 28,000

= $68,000

Required adjustment to the Allowance for Doubtful Accounts at December 31, 2017 = $68,000

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In 20x7 the Golic Co. had net credit sales of $900,000. On January 1, 20x7, the...
In 20x7 the Golic Co. had net credit sales of $900,000. On January 1, 20x7, the Allowance for Doubtful Accounts had a credit balance of $22,500. During 20x7, $36,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage-of-receivables basis). If the accounts receivable balance at December 31 was $240,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 20x7? Question 21 options:...
in 2018, Oriole Company had net credit sales of $1125300. On January 1, 2018, Allowance for...
in 2018, Oriole Company had net credit sales of $1125300. On January 1, 2018, Allowance for Doubtful Accounts had a credit balance of $26100. During 2018, $42000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 12% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $376000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2018? $45120 $29220 $119136...
In 2018, Bramble Company had credit sales of $898000. On January 1, 2018, Allowance for Doubtful...
In 2018, Bramble Company had credit sales of $898000. On January 1, 2018, Allowance for Doubtful Accounts had a credit balance of $22400. During 2018, $36200 of uncollectible accounts receivable were written off. Past experience indicates that the allowance balance should be 12% of the accounts receivable become uncollectible. What should be the required adjustment to the Allowance for Doubtful Accounts at December 31, 2018 if the ending accounts receivable balance was $240000?
On December 31, 2017, Toro Company’s Allowance for Doubtful Accounts had an unadjusted credit balance of...
On December 31, 2017, Toro Company’s Allowance for Doubtful Accounts had an unadjusted credit balance of $31,000. The accountant for Toro has prepared a schedule of the December 31, 2017, accounts receivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that will become uncollectible. This information is summarized as follows: December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percentage Uncollectible $1,510,000                    Not due (under 30...
On December 31, 2017, Toro Company’s Allowance for Doubtful Accounts had an unadjusted credit balance of...
On December 31, 2017, Toro Company’s Allowance for Doubtful Accounts had an unadjusted credit balance of $42,000. The accountant for Toro has prepared a schedule of the December 31, 2017, accounts receivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that will become uncollectible. This information is summarized as follows: December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percentage Uncollectible $2,050,000 Not due (under 30 days)...
As of January 1, 2018, Farley Co. had a credit balance of $520,000 in its allowance...
As of January 1, 2018, Farley Co. had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on experience, 2% of Farley's credit sales have been uncollectible. During 2018, Farley wrote off $650,000 of accounts receivable. Credit sales for 2018 were $18,000,000. In its December 31, 2018, balance sheet, what amount should Farley report as allowance for uncollectible accounts? A) $230,000. B) $360,000. C) $590,000. D) $880,000. Here the correct answer is $230,000. As of January 1,...
As of January 1, 2021, Barley Co. had a credit balance of $523,000 in its allowance...
As of January 1, 2021, Barley Co. had a credit balance of $523,000 in its allowance for uncollectible accounts. Based on experience, 2% of Barley's gross accounts receivable have been uncollectible. During 2021, Barley wrote off $653,000 of accounts receivable. Barley's gross accounts receivable as December 31, 2021 is $18,150,000. In its December 31, 2021, balance sheet, what amount should Barley report as allowance for uncollectible accounts?
As of January 1, 2016, Farley Co. had a credit balance of $537,000 in its allowance...
As of January 1, 2016, Farley Co. had a credit balance of $537,000 in its allowance for uncollectible accounts. Based on experience, 4% of Farley's credit sales have been uncollectible. During 2016, Farley wrote off $635,000 of accounts receivable. Credit sales for 2016 were $19,800,000. In its December 31, 2016, balance sheet, what amount should Farley report as allowance for uncollectible accounts?
Jarden Company has credit sales of $3,000,000 for year 2017. On December 31, 2017, the company’s...
Jarden Company has credit sales of $3,000,000 for year 2017. On December 31, 2017, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $18,424. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 600,000 Not...
At December 31, 2019 Amr Co. has accounts receivable balance $400,000. Amr Co. estimates that 5%...
At December 31, 2019 Amr Co. has accounts receivable balance $400,000. Amr Co. estimates that 5% of these receivables will prove uncollectible. On April 1, 2020, Amr Co. write-off of the $500 balance owed by Nezar Co. On June 1, 2020 Nezar Co. pays the $500 amount that Sami Co. had written off on March 1. Prepare the journal entries and the ledger account for Accounts receivables and Allowance for doubtful accounts Date Debit Credit                                             Accounts receivable Allowance for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT